Find the value of the stock per share

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Wilson Company plans to buy back 1 million shares of its own stock from its cash reserves at $75 a share. This will increase the bankruptcy costs by $12 million, and the debt/assets ratio from 36% to 40%. The income tax rate of the company is 30%. Find the value of the stock per share after this buyback. Is the company making the right move?

Reference no: EM13263309

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